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> Is the financial press just afraid of upsetting China here? BlackRock is the biggest foreign owner of Evergrande bonds. Next there are Vanguard, and a few o

> Is the financial press just afraid of upsetting China here? BlackRock is the biggest foreign owner of Evergrande bonds. Next there are Vanguard, and a few other equally big Western funds. https://www.reuters.com/business/finance/blackrock-hsbc-among-largest-buyers-evergrande-debt-morningstar-2021-09-21/ https://www.reuters.com/business/finance/blackrock-hsbc-amon...

adventured 5y ago
Where does the article say that? It says: "BlackRock, HSBC among largest buyers of Evergrande debt" Those are relatively recent purchases and they were tiny re BlackRock - "BlackRock added 31.3 million notes of Evergrande's debt between January and August 2021, pushing its stake in the company to 1% of the assets in its $1.7 billion Asian High Yield Bond Fund, according to Morningstar." 1% of $1.7 billion, or $17 million. That's equal to 1/100th of 1% of BlackRock's assets. And they've got $9+ trillion under management. BlackRock has taken a hit on their equity in Evergrande, which is already largely toast: "The data also shows that BlackRock, the world’s largest asset manager, has suffered a $95.3m book loss on its Evergrande holding, which at the start of the year stood at just over $111m." https://www.fnlondon.com/articles/blackrock-vanguard-shareholdings-in-evergrande-plummet-by-more-than-250m-20210928 https://www.fnlondon.com/articles/blackrock-vanguard-shareho... The Financial Times in late September estimated BlackRock's total exposure to Evergrande at $400 million. At their scale they can take a $250-$400 million loss and shrug it off. Evergrande represents a several hundred billion dollar problem for China domestically, and that's before you get to the cascade risk for their property market (which represents 65-70% of all household assets in China).
- baybal2 5y ago
  Is it important, or the fact that a megafund like BlackRock makes completely hopeless C rated bonds from a very shady market 1% of their fund? 1% of a BlackRock fund is a megaton of money. Remember, LTCM went down after a few percent sell-off turning into an avalanche. And yes, this below is very appropriate. https://blackrockloveschina.com/ https://blackrockloveschina.com/
  - curuinor 5y ago
    1.7 billion fund to blackrock is nothing to them, shove like 5-10 peeps to it, tops also the vast majority of blackrock's holdings are unleveraged equity
  - tedunangst 5y ago
    Is blackrock leveraged 100x on evergrande bonds?
loeg 5y ago
Source on Vanguard's ownership of Evergrande bonds? The linked article mentions some other companies (Fidelity, etc) but not Vanguard.
- baybal2 5y ago
  It was in the headlines recently. I can't recall where.

adventured 5y ago

Where does the article say that? It says: "BlackRock, HSBC among largest buyers of Evergrande debt" Those are relatively recent purchases and they were tiny re BlackRock - "BlackRock added 31.3 million notes of Evergrande's debt between January and August 2021, pushing its stake in the company to 1% of the assets in its $1.7 billion Asian High Yield Bond Fund, according to Morningstar." 1% of $1.7 billion, or $17 million. That's equal to 1/100th of 1% of BlackRock's assets. And they've got $9+ trillion under management. BlackRock has taken a hit on their equity in Evergrande, which is already largely toast: "The data also shows that BlackRock, the world’s largest asset manager, has suffered a $95.3m book loss on its Evergrande holding, which at the start of the year stood at just over $111m." https://www.fnlondon.com/articles/blackrock-vanguard-shareholdings-in-evergrande-plummet-by-more-than-250m-20210928 https://www.fnlondon.com/articles/blackrock-vanguard-shareho... The Financial Times in late September estimated BlackRock's total exposure to Evergrande at $400 million. At their scale they can take a $250-$400 million loss and shrug it off. Evergrande represents a several hundred billion dollar problem for China domestically, and that's before you get to the cascade risk for their property market (which represents 65-70% of all household assets in China).

baybal2 5y ago
Is it important, or the fact that a megafund like BlackRock makes completely hopeless C rated bonds from a very shady market 1% of their fund? 1% of a BlackRock fund is a megaton of money. Remember, LTCM went down after a few percent sell-off turning into an avalanche. And yes, this below is very appropriate. https://blackrockloveschina.com/ https://blackrockloveschina.com/
- curuinor 5y ago
  1.7 billion fund to blackrock is nothing to them, shove like 5-10 peeps to it, tops also the vast majority of blackrock's holdings are unleveraged equity
- tedunangst 5y ago
  Is blackrock leveraged 100x on evergrande bonds?

loeg 5y ago

Source on Vanguard's ownership of Evergrande bonds? The linked article mentions some other companies (Fidelity, etc) but not Vanguard.

baybal2 5y ago
It was in the headlines recently. I can't recall where.